Short-Term Medical Coverage

Short-Term Medical Coverage

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It Could Save You from Ruin

Millions of Americans are uninsured today, many of who have lost their jobs and are first realizing the high cost of health care coverage that was previously provided by their employer. Rather than take on this new expense while unemployed, many are choosing to go without coverage all together – risking not only their health but also their financial well-being. What these individuals don’t realize is that affordable solutions do exist, such as Short-Term Medical Insurance.

The burden is on the laid-off worker to study health insurance options. The trouble is, many don’t realize they can choose to go the “short-term” insurance route. Short Term Medical insurance can help millions of people fill the gap between permanent health insurance plans, according to Raj Bal, Senior Vice President Specialty Products at Fortis Health.

So how to reduce debt? The answer isn’t rocket science– it’s just a dose of common sense mixed with a dash of will power. Here’s the recipe.

Continuing Coverage is Critical to Workers

“Continuing health insurance coverage is important for individuals and families, but sometimes with the high costs, they decide to go without, placing them at risk for financial ruin in the event of an unexpected major medical catastrophe,” says Bal.

One of the greatest advantages of Short Term Medical insurance is that it is a more cost-effective alternative to COBRA insurance (the coverage that employers offering group health coverage must offer by federal law). Furthermore, employer groups of less than 20 are not required to provide COBRA, so a large portion of small employer-based workers, along with the self-employed, do not have access to continuing coverage.

An Affordable Solution

Federal law requires that employers with over 20 employees, who also provide group coverage, offer COBRA to displaced workers. The coverage is costly, averaging approximately $3,000 for individuals and $8,000 per year for family coverage.

Short-Term Medical is a cost-effective alternative to maintain health care coverage at a fraction of the price of COBRA – typically about one-third the cost. The plans are designed for generally healthy individuals in a variety of situations. These include:

  • Workers who have been laid off or are in between jobs
  • Employees starting positions who are facing the health insurance “waiting period”
  • College students who are no longer covered under their parents’ plan following graduation
  • Employees in seasonal or temporary positions
  • Independent workers
  • Early retirees who have a short waiting period for Medicare

Speed Counts

Short-term medical insurance also allows the insured to choose the price of coverage based on the amount of the deductible in hand. (Note: short-term medical does not cover pre-existing conditions). As for speed, coverage (from companies like Fortis) can start as early as the next day.

Finally, and perhaps the most important of debt reduction strategies, develop a specific monthly budget for you and/or your family. This plan should address a plan of action that eliminates spending on unnecessary goods and services. This might include foregoing those Friday night pizzas, a few drinks at the bar, your premium cable package – or even that morning cup of java. Developing a clear picture of your financial situation will help pinpoint the areas where debt can be reduced, and with it, the financial stress in your life.

VIRAL NEWS

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